... 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? 4. Explain the meaning of “strong” currency and “weak” currency. What are the advantages and disadvantages of each? 5. Why is outsourcing such an attractive way for firms to tap into foreign markets? What are the risks of foreign outsourcing? 6. Outline the potential pros and cons of the 3 key strategies for developing foreign markets: exporting, licensing and franchising, and direct investment. 7. Explain how countertrading works. What are the benefits and drawbacks for both parties that engage in countertrading? 8. What are the key elements of sociocultural barriers to trade? How can companies overcome these barriers? 9. How has NAFTA impacted the U.S.? Overall, do you believe that it was a positive move for the U.S.? Why or why not? 10. What is the overarching goal of the European Union? What role has been played by the introduction of the euro? Application Questions 1. An ever-growing world population means that there are countless opportunities for American firms to conduct business abroad, especially in developing nations. Use the Internet to research population...
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...shifts for international businesses based in Great Britain? North America? Hong Kong? Over the last 30 years, there has been a shift away from a world in which national economies were relatively self-contained entities, isolated by barriers to cross-border trade and investment, and by national differences in government regulation, culture, and business systems; and moving toward a world where barriers to cross-border trade and investment are declining, material cultures are becoming similar, and national economies are merging into an integrated, interdependent global economic system. As companies from Japan and emerging markets like China play a more vital role in the world economy, the dominance of companies from the United States and Western Europe has diminished. Significant implications for British firms involve looking beyond Europe and America for investment and opportunities. Consumer spending power is growing quickly in developing countries. For North American companies, the same holds true, although the importance of the growing prosperity in Latin America suggests a potentially huge market in “their backyard.” Hong Kong is perceived as the gateway to the immense market of mainland China. Since Hong Kong firms are now less taken for granted, access to China is improving along with the move towards a market economy within China. International businesses based in all three locations are facing new opportunities and threats. 2. "The study of international business...
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...Social media based marketing in Australia: Before going into the detail that how Australian companies are changing their focus from traditional marketing methods into social media-based marketing methods. First, let's just consider that why companies in Australia found it important to shift their focus on social media. There are some important statistics collected in 2013 about the interest of Australian people, regarding the use of social media (Bruns 2013). Bruns stated that almost 75% of Australians were active on social media. Some of them use it for connecting and communication while the majority of them uses social media for time killing and reaching out information about events and products as well. During the past few years, Australians or particularly a large percentage of Australian people have started using the internet and social websites as an essential part of their daily life. A recent survey (Scott 2015), stated that almost 75% of Australians have laptops, 70% of Australians own the smart phone, and almost 55% of the whole population own tablets. It shows that Australian people have easy access to the internet. Social is already an evolved trend in Australian community but still there is a lot of room for improvement and evolvement. These statistics also shows that 80% of the people who own smart devices, have social media profiles, and they use those social media websites for connecting with friends and family. For this report, following two Australian companies...
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...and Informatics Business Studies Department Name: Brian Tugah Subject: BS 424: International Management Topic: Understanding the International Business Environment Lecturer: Tabian Ambang Why International Businesses are expanding their operations into less-developed countries? Today, the world is becoming smaller and smaller and it is more now like a one community. The force behind how the world is going today is because of technology and globalization. Rapid changes in technology have caused communication to be faster through internet, email and telecommunications. Through technology, faster means of transportation has also been developed. Globalization on the other hand is breaking cultural, political, social and country boundaries which presents opportunities for international businesses to go global, thus weaving national economies together (McFarlin &Sweeney, 2003). To continue, this essay is going to outline some factors on why international businesses are moving into and establishing and carrying out their business operations in less- developed countries. The reasons or factors given in this essay are from my own view, but I am supporting them with case studies and some other reasons from different authors. For a start, I believe that the reason why international businesses expand to other parts of the world outside of their domestic environment, especially to less developed countries is because of two things. It is the pull and push factors that causes...
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...International Marketing Ecovoit Granges julien; Donnati Adrien Table of Contents Introduction I Company presentation 1. Type of enterprise 4 2. Business type 4 3. How it works 5 II Marketing plan 1. Location of markets 6 2. SWOT 7 3. Segmentation 9 4. Princing strategy 10 5. Promotion 11 6. Distribution channels 11 Conclusion Introduction For this presentation of international marketing, we first began by searching an area for our company. We study both in Rouen but we live at about 1h30 of distance in car. We use both carpool. It is from here that we get the idea. In the first part we will present the company and in the second part we will present our marketing plan. I Company presentation 1. Type of enterprise We have chosen this name for our company because it is a mix between « ECO » (which refer to ecology) and and « COVOI » (which refer to covoiturage which means carpool in french). Ecovoit company is a website, we don’t have any shops. This website permit to users to find or post carpool advertisements where and when they want. Carpool consists in sharing his car during one ride and thus, share toll and petrol costs. This phenomenon has taken an large sweep and continues to grow because of the economic crisis and the decline of purchasing power. Today the price of petrol and the car maintenance, which can be added...
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...and technology. In economics, Globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. It shows the market expansion and integration, and it is an unchangeable tendency for international economic development. In economy, globalization is playing a significant role to make advancement to this sector over the world. Globalization has created widely the international economy, integration of markets and the flow or movement in the world, all of which make escalations in global movement. There are many importance of globalization on economy for many years. Improvement in technology has a essential effect in decreasing the costs of transportation, communication and commodity also lowering the price of data processing and information storage. There is a sign of the modern technology like electric mail, the internet, and World Wide Web. And with technological development, laptop computer in contemporary time is more powerful than the very large powerful computer in twenty five years ago and the price level in 1990 was only about 1/125 compared to that in 1960. Later on in 1998, the computer price wars reduced about 80% more. Furthermore, because of the advancement of technological...
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...It was understood from the outset that data may not exist to answer all the desired needs and, hence, the scoping study would help to confirm the need for future primary research, as well as the parameters and dimensions of that research. This paper describes the key findings of the scoping phase. In identifying the current trends and practices in the Travel Agency Service Industry, the research was based on secondary data to specifically consider the following issues, as identified by AFTA: • Travel agency reservations and bookings as compared to reservations and bookings conducted over the internet; • Use of the internet for information sourcing for travel decision making as opposed to advice from travel agents; • Variations in usage of the internet versus travel agents according to market segment and length of stay; • Direct selling by airlines; • Reasons for traveller use of the internet; and • Best practice competitive strategies by key travel agents. Data Sources and Limitations The data for the study were drawn from a number of sources, including IbisWorld, Tourism Australia, Roy Morgan, AC Nielsen, Australian Bureau of Statistics, Sustainable Tourism Cooperative Research Centre (STCRC) and various media sources. It should be noted that the IbisWorld (2005) data was used extensively as it provided regular updates on the travel agent industry. The wide-ranging...
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...Chapter 2: The Political, Legal, and Technological Environment Learning Objectives and Chapter Summary |1. |INTRODUCE the basic political systems that characterize regions and countries around the world and offer brief examples of | | |each and their implications for international management. | | | | | |The global political environment can be understood via an appreciation of ideologies and political systems. Ideologies, | | |including individualism and collectivism, reflect underlying tendencies in society. Political systems, including democracy| | |and totalitarianism, incorporate the ideologies into political structures. There are fewer and fewer purely collectivist or| | |socialist societies, although totalitarianism still exists in several countries and regions. Many countries are | | |experiencing transitions from more socialist to democratic systems, reflecting related trends discussed in Chapter 1 toward| | |more market-oriented economic systems. | |2. |PRESENT an overview of the legal and regulatory environment in which MNCs operate worldwide, and highlight differences in | | |approach to different legal and regulatory...
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...Running head: WHY GOOGLE WAS ABLE TO BEAT YAHOO 1 Why Google was able to beat Yahoo: External factors influencing the development and domination of the twenty-first century internet giants Gregory A Totty MGT510 Strategic Planning Dr. Walter McCollum Colorado State University WHY GOOGLE WAS ABLE TO BEAT YAHOO Abstract The purpose of the following research is to illustrate how external factors can influence the development of market share in a new industry. The primary example is a case study of the organization known as “Yahoo”; the first internet only large corporation, which failed to grow with its early domination of the new emerging market of the World Wide Web. The evolving industry originally was a creative person’s domain. It was viewed in its infancy more like a vast library, than the center of all knowledge transfer much as it has become. The mistakes made by Yahoo early in the century, soon became an uncontrollable nemesis; and would eventually force the organization to re-organize. This research attempts to provide evidence for Yahoo’s demise along with the primary external factors that were either overlooked or their magnitude of 2 influence was not properly considered. Based upon the evidence provided, an alternative strategy for a similar percentage of market share was implemented by Google who, partially by learning from the mistakes of Yahoo, was able to forecast more accurately; resulting in a dominance of the same market today. Conclusions can...
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...that we are accustomed to in the United States, many countries do not have the same technological advances. www.marketing find.com concisely states “International marketing is no longer an option, but a strategic imperative. Businesses that focus primarily on their domestic markets will be left behind as their competition gains ‘first mover advantage’ “.A marketer has to change their strategy in other countries depending on laws, culture, and technology. Marketers face many challenges across the world and have to tailor their campaigns accordingly. The first thing that marketers should consider is what message they are trying to convey to consumers and why consumers should want or need their products/services. Customers place importance on various things around the world that Americans do not, such as “in China you cannot sell the same lines of cosmetics or shampoos nationwide”, as quoted from Cateora. American wants and needs do not always match the wants and needs of different countries, marketers have to find a way to justify that consumers need or want their products and/or services. Laws carry great importance, as they should, globally, influencing a marketers course of action in an advertising campaign. Marketing products such as alcohol or cigarettes can be very difficult in areas around the world, especially in the more developed parts of the world where importance is placed on the health of society and individuals. A country may limit how a company can market its product...
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...SUPPLY CHAIN MANAGEMENT Supply Chain Management University of Maryland University College ITEC610 Section 1142 Semester 0809 Abstract This paper defines the concept of technology in Supply Chain Management used to promote planning, analyze and account for the operations of a supply chain business with the goal being increased profits as well as a satisfied clients. This paper will discuss how to accomplish the benefits of cost, and profits through the use of a Supply Chain Management system. A thorough examination between buyers and sellers, along with the supply chain will be evaluated. This paper will investigate and analyze the ways in which the inventory management at Wal-Mart helps in its business processes. This paper will also look into the characteristics of supply chain management, including risk-management, inventory strategies and decision-making, and customer relationship aspects. Finally, it will look at the importance of sharing data by utilizing information systems. Supply chain is a network of retailers, distributors, transporters, storage facilities and suppliers that participate in the production, delivery and sale of a product to the consumer (Kietzman, 2008). Every effort involved in producing and delivering is looked at in supply chain, from the final product supplier's supplier to the customer's customer. A Business depends on supply chain to provide them with what they need in order...
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...NTT DoCoMo: Marketing i-mode Why was NTT DoCoMo so successful? What is the most critical reason for its success? DoCoMo’s i-mode delivered a service that met the incipient need of a large target group in the market, namely a world wide web-like content service on a mobile phone, and rapid easy messaging; this was the critical driver of its success. Most of their strategic and marketing decisions, such as its choice of content, advertising, pricing, technology and hardware, revolved around appealing to young Japanese customers. Its consistent marketing approach created a service that consumers were previously not able to articulate. The service was a “blue ocean” (Kim & Mauborgne, 2005) - a standalone service that uniquely integrated the most appealing aspects of the internet and mobile communications. The following are the key decisions that supported the success of DoCoMo: Content DoCoMo chose not to control the entire value chain from content to network, but rather involved the work of third-party entrepreneurs to build content. Partners like Bandai (Moon et al., 2002, p.6), Japan’s largest producer of toys and video games, supplied emotionally appealing content for teenagers and young adults. In addition, a centralized and seamless billing structure facilitated payment to content providers by subscribers who valued convenience and who disliked small purchases made with credit cards. This service proved popular; in 2001 around half of i-mode’s customers were subscribing to...
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...BUYVIP, THE INTERNATIONALIZATION OF A SPANISH DOT COM The “Centro Virtual de Experiencias de Internacionalización” (On-line Centre for International Business Cases) is the result of the collaboration of the Spanish Institute for Foreign Trade ICEX and AEEDE, the Spanish Association of Business Schools , which includes eleven leading Business Schools. The aim of this project is to promote the internationalisation of Spanish SMEs, drawing on the academic rigour of the business schools that have participated in this project. This centre presents case studies of Spanish companies that are successful internationally. These case studies can be found on the ICEX webpage and appear in a multimedia format that includes discussion forums and articles that create awareness of the key issues involved in internationalisation. The success stories chosen represent a broad sample of sectors and geographic areas and show the globalisation process that some of our companies have gone through. The company profile shown here is that of an SME multinational which has become a reference point in its sector, basing its international penetration strategies on factors as diverse as marketing, management, financial liquidity and business alliances. This pioneering project, in Europe and throughout the world, serves to promote and diffuse a comprehensive entrepreneurial culture among SMEs. It promotes the integration and association between universities and businesses, facilitates dialogue...
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...islands into themselves. With the advent of globalization, the computer, and in particular the internet, people can easily invest not only in foreign corporations but also in the bonds and other papers of the foreign countries themselves. As a result, what happens in the economies of foreign countries can rapidly affect the investors of countries halfway across the world. This has been the case for only ten years, and the reason why Friedman says its whole new ball game and that --- “the world is only ten years old”. The cold war no longer is a dominating system for understanding foreign affairs. We are now in a new international system Friedman calls “globalization”. The Cold war was characterized by division; now it’s characterized by integration, integration made possible by rapid-speed airplanes, cheap international telephone charges, satellite communication and more than ever, the computer and the internet. We now have an entirely new set of financial understandings to achieve. What used to be true is no longer necessarily true. As a result of information Arbitrage, we can no longer think like specialists, because what’s going on in this new world requires us to think rapidly and multi-dimensionally. We can no longer, for example, think only like financiers; we must understand policies, because what happens politically in one country can affect finances in another. How? Why? Because, we can invest in corporations and countries other than the U.S., for the same reason...
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...BUYVIP, THE INTERNATIONALIZATION OF A SPANISH DOT COM The “Centro Virtual de Experiencias de Internacionalización” (On-line Centre for International Business Cases) is the result of the collaboration of the Spanish Institute for Foreign Trade ICEX and AEEDE, the Spanish Association of Business Schools , which includes eleven leading Business Schools. The aim of this project is to promote the internationalisation of Spanish SMEs, drawing on the academic rigour of the business schools that have participated in this project. This centre presents case studies of Spanish companies that are successful internationally. These case studies can be found on the ICEX webpage and appear in a multimedia format that includes discussion forums and articles that create awareness of the key issues involved in internationalisation. The success stories chosen represent a broad sample of sectors and geographic areas and show the globalisation process that some of our companies have gone through. The company profile shown here is that of an SME multinational which has become a reference point in its sector, basing its international penetration strategies on factors as diverse as marketing, management, financial liquidity and business alliances. This pioneering project, in Europe and throughout the world, serves to promote and diffuse a comprehensive entrepreneurial culture among SMEs. It promotes the integration and association between universities and businesses, facilitates dialogue...
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